FHLB and Fed Discount Window Policy
Position Summary
The Federal Home Loan Bank System (“FHLB”) and the Federal Reserve’s discount window are both critical, but distinct, sources of liquidity for banks. Efforts by the Fed to modernize and improve discount window operations are welcome and essential to ensuring it can serve as an effective “lender of last resort.” At the same time, any policy reforms to the discount window should avoid undermining the FHLBs’ important liquidity role.

FHLB and Fed Discount Window Policy News

Blog post

Fed’s Discount Window Improvements Will Help Its Use

State regulators support the Federal Reserve Board of Governors’ efforts to improve the discount window’s accessibility and reduce its stigma so that it can serve as an effective and efficient source of liquidity, CSBS said in a comment letter today in response to a request for information. The discount window is a critical source of liquidity for the banking system
December 10, 2024

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